LHC Declares Fuel Charge Adjustment in Electricity Bills ‘Illegal’

The Lahore High Court (LHC) has declared the imposition of Fuel Charge Adjustments (LCA) in electricity bills as illegal.

According to the details, Lahore High Court (LHC) Judge, Ali Baqar Najafi, announced the verdict, which was reserved on October 10, 2023 on similar petitions.

The court has directed the government to provide maximum subsidy to the domestic consumers of 500 units per month and not demand any extra charges in form of taxes of Fuel Charge Adjustments (FCA).

Meanwhile, the court directed the government to explore other options to make recover and look into solar, hydel, nuclear, or wind sources for producing electricity or purchase cheaper electricity from other countries.

The court also asked to government to ensure a smooth supply of electricity to consumers.

Moreover, the court directed NEPRA to not charge any exorbitant tariff beyond the paying capability of the consumers. Further, the court also directed NEPRA to inform customers about any charges on monthly basis and said that Fuel Price Adjustments (FPA) should not go beyond 7 days, while the Quarter Tariff Adjustments must not exceed the statutory period.

The court added that imposition of extra charges through various taxes of FCA results in economic strangulation of the consumers. It added that power producing companies must improve their performance to increase profits and not the price of electricity.

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